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The global operational technology security market reached USD 16,842.3 MN in 2022 and is projected to grow to USD 105,933.4 MN by 2032, with a 21.7% CAGR during the review period (2023-2032). The Operational Technology (OT) Security market is dynamic and rapidly evolving, especially in safeguarding critical infrastructure and industrial processes. As industries increasingly digitize & connect their operational technologies and, the need for robust security measures has become more pronounced. Market dynamics in the OT security space are characterized by a combination of technological advancements, regulatory pressures, and the ever-present threat landscape. Technological advancements form a cornerstone of the OT Security market's dynamics.
With the proliferation of Industrial Internet of Things (IIoT) devices and the integration of smart technologies, businesses are exposed to a broader attack surface. As a response, the market witnesses a continuous influx of innovative security solutions, ranging from advanced threat detection systems to resilient access controls. Vendors compete to stay ahead of the technological curve, offering solutions that not only address current vulnerabilities but also anticipate future challenges. Regulatory pressures exert a significant influence on the OT Security market, compelling organizations to comply with stringent security standards. Governments and regulatory bodies worldwide are increasingly recognizing the potential risks associated with cyber threats to critical infrastructure. Consequently, industries such as energy, manufacturing, and healthcare are compelled to invest in comprehensive security solutions to ensure compliance with regulatory frameworks. This dynamic creates a push-pull effect in the market, where vendors respond by developing solutions that not only meet current regulations but also anticipate forthcoming compliance requirements.
The threat landscape is a driving force shaping the market dynamics of OT Security. Cyber threats targeting industrial systems continue to evolve in sophistication and frequency. Incidents like ransomware attacks on industrial facilities or nation-state-sponsored cyber espionage highlight the vulnerabilities of operational technologies. This heightened threat landscape propels businesses to reassess and fortify their security postures continually. In response, the market witnesses a surge in demand for threat intelligence, incident response, and vulnerability management solutions to proactively mitigate risks. The global nature of the OT Security market contributes to its dynamics as different regions grapple with unique challenges and priorities. For instance, regions with a high concentration of critical infrastructure, such as energy hubs or manufacturing centers, may experience more robust demand for OT security solutions. Additionally, emerging economies are recognizing the importance of securing their industrial assets, leading to increased adoption of OT security technologies. This regional diversity adds complexity to the market dynamics, as vendors must tailor their offerings to meet the specific needs and regulatory landscapes of different geographical markets. Collaboration and partnerships are becoming increasingly prevalent in the OT Security market.
As the complexity of industrial environments grows, vendors recognize the need for comprehensive, integrated security solutions. This has led to partnerships between OT security providers and other technology vendors, such as those specializing in IT security or cloud services. Such collaborations aim to deliver end-to-end security solutions that bridge the gap between traditional IT and OT environments, providing organizations with a holistic approach to cybersecurity.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Component, Deployment, End Use Industry, and Region |
Operational Technology Security Market Highlights:
Operational Technology Security Market Overview
The Operational Technology Security market size is projected to grow from USD 22.04 Billion in 2024 to USD 105.93 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.68% during the forecast period (2024 - 2032). Additionally, the market size for Operational Technology Security was valued at USD 18.11 Billion in 2023.
The convergence of IT and OT ecosystems and rising risks of cyber threats on critical infrastructure are the key market drivers boosting the growth of the Operational Technology Security market.
Figure1: Operational Technology Security Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Operational Technology Security Market Trends
Increasing trend of using artificial intelligence, cloud technology, edge computing, and machine learning, along with IoT technology
Technological advancement is a continuous process. There is an increasing trend of using artificial intelligence, cloud technology, edge computing, and machine learning, along with IoT technology. The IoT is completely dependent on the network connectivity of the devices. The advent of 5G technology, in combination with IoT technology, is also expected to create lucrative opportunities across various industry verticals. Further developments in 5G would result in a faster internet connection and an unmatched degree of connectivity among connected devices in an IoT environment, which is not possible with the current connectivity technologies. Industrial Internet of things (IIoT) is a collection of connected devices that are used for expediting the production process in industrial sectors. IIoT can be used in maximizing efficiency and minimizing wastage of resources. Various industry leaders are implementing IIoT in their processes to expand their current businesses. Government policies such as Make in India, Industrial Value Chain Initiative Forum, and Industry 4.0 can create awareness in industries and positively influence its adoption rates. Investments by industry leaders in IoT can galvanize market growth in the coming years. The rapid pace of industrialization and integration of automation to alleviate the burden on production assemblies has also created several opportunities in the operational technology security market. Thus, the increasing investments in adopting IIOT solutions are expected to offer lucrative opportunities for the players operating in the Operational Technology Security Market during the forecast period.
Operational Technology Security Market Platform Segment Insights
Operational Technology Security Component Insights
Based on components, the Operational Technology Security Market segmentation includes Solution and Services. The Solution held the majority share in 2022, contributing around ~67.8% to the market revenue. The solution segment is further divided into OT endpoint security, OT network segmentation, anomaly detection, incident response and reporting, and others. The service segment is further bifurcated into professional and managed services. The managed security services are deployed with multiple delivery methods to help companies assess, design, and manage security strategy and activities, and thus, protect the OT systems. Operational technology (OT) is a set of hardware and software that detects anomalies in the physical devices and is involved in the monitoring and control of processes and events in the enterprise. OT security solution is commonly used in industrial control systems (ICS) such as SCADA systems. OT security solutions are also used to control power stations and public transportation. As this technology advances and converges with networked tech, the need for OT security grows exponentially. OT security solutions include various security technologies ranging from next-generation firewalls (NGFWs) to security information and event management (SIEM) systems to identity access and management. Based on solution, the Operational Technology Security Market is further segmented into OT endpoint security, OT network segmentation, anomaly detection, incident response and reporting, and others.
FIGURE2: OPERATIONAL TECHNOLOGY SECURITY MARKET, BY DEVICE, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Operational Technology Security Deployment Insights
The Operational Technology Security Market segmentation, based on deployment, includes On-Premise, Hybrid, and Cloud. On-Premise dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2032. Along with changing Industry 4.0 trends and the convergence of IT and operational technology (OT) environments, ICS infrastructure is becoming more connected to the outside world to enable production analytics and optimization. This requires converging IT and OT monitoring, security, and remote and on-premises access control capabilities. Many organizations are considering network-access-control (NAC) technology to bridge the gap between service providers and users, offering users with superior device visibility and threat response.
Operational Technology Security End-User Insights
The Operational Technology Security Market segmentation, based on end user industry, includes Power & Electrical (Power Transmission Grid Operator (Protection Relays, Communication Infrastructure, Substation Automation, and Others) Power Distribution Grid Operator (Protection Relays, Communication Infrastructure, Substation Automation, and Others)), Manufacturing (Discrete and Process), Transportation, Mining, and Others. Power & Electrical had the largest revenue share of the global market.
Operational Technology Security Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Operational Technology Security market accounted for ~41.2% market share in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is due to a significant number of key players in North America, making it the primary contributor to the market share. North America dominates the Operational Technology Security market due to an increase in Operational Technology Security applications and research and development activity in this area.
In North America, several multinational companies run their businesses online and on-premises, which increases the risk of cyber-attacks. This, in turn, has created lucrative opportunities for cybersecurity and OT security companies to offer a wide range of services to these companies.
North America is expected to dominate the Operational Technology Security Market throughout the forecast period owing to the presence of advanced connectivity infrastructure and the rising need for network virtualization. Overall, the North America operational technology security market is driven by the continuous demand for such services from multinational companies. For instance, the destruction of one of the major pipelines in the United States as a result of ransomware has clearly illustrated the real-world consequences of a successful hit.
FIGURE 3: OPERATIONAL TECHNOLOGY SECURITY MARKET SIZE BY REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Europe is the second-largest market for OT security. The continent is home to some of the largest industrial states in the world, such as Germany, and also to some of the most technologically and startup-friendly countries such as Israel and the UK. Some of the key factors that are responsible for the market growth include the surge in data traffic, the advent of 5G, growing number of cloud-based data centers, employee mobility, and the increasing adoption of IoT technologies are encouraging enterprises and service providers to incorporate operational technology security solutions into their networks. Europe is one of the early adopters of OT security.
The Network and Information Security (NIS) Directive was the first piece of EU-wide cybersecurity law, with the particular goal of achieving a high common standard of cybersecurity throughout the Member States. While it improved Member States' cybersecurity capabilities, its implementation proved problematic, causing in internal market fragmentation at several levels. To address the growing threats posed by digitalization and the surge in cyber-attacks, the Commission has proposed replacing the NIS Directive, thereby strengthening security requirements, addressing supply chain security, streamlining reporting obligations, and introducing more stringent supervisory measures and stricter enforcement requirements, including harmonised sanctions across the EU.
Asia-Pacific is one of the fastest-growing markets for OT security. The growing industrial development in the region, especially in countries such as China and India, is pushing the market forward. Asia-Pacific is home to countries with strong manufacturing and technological capabilities, which has resulted in a demand for OT security. The key factors driving the growth of the regional market are increasing need to consolidate the threat detection and prevention operations at one place, and enterprises focus on the vulnerability and threat exposures of their systems. Digital change in critical infrastructure has extended the danger environment in recent years, making vital Indian infrastructure systems such as gas, water supply, and government services increasingly vulnerable to cyberattacks. Indeed, India ranks first among the 20 countries with critical infrastructure installations that use default login credentials, leaving it particularly susceptible.
Cyber-attacks against Middle Eastern companies increased during 2021. The majority of this increase was caused by threat actors linked to five known clusters outside the area that targeted vital infrastructure, manufacturing, utilities, and oil and gas infrastructure. Attacks on oil and gas companies and the manufacturing sector are increasing disproportionately.
Operational Technology Security Key Market Players & Competitive Insights
With a strong presence across different verticals and geographies, the Operational Technology Security market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Operational Technology Security market is highly competitive, with many vendors offering similar products and services.
The major players in the market include Honeywell International Inc., Schneider Electric, Palo Alto Networks, Cisco Systems Inc., Fortinet Inc., General Electric, HCL Technologies Ltd, Vmware, Inc., Broadcom, Kaspersky Lab, General Electric, Rockwell Automation, Inc, Pas Global LLC (Hexagon AB), Forescout Technologies Inc, Darktrace, Nozomi Networks Inc, and Scadafence. HCL has strategic partnerships and alliances with global technology vendors, customers, and niche solution providers. The company has alliances with approximately 150 companies in various technology areas, including go-to-market alliances, partnerships for specific customer requirements, and specialist partnerships for niche technologies. It has strategic partnerships with digital technology providers, including Adobe, Appian, MuleSoft, Pegasystems, Apigee, AWS, Hortonworks, and Celonis. The company invested in an alliance partner center of excellence (CoEs), which builds solution frameworks and accelerators.
The Operational Technology Security Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Operational Technology Security market include
- Honeywell International Inc.
- Schneider Electric
- Palo Alto Networks
- Cisco Systems Inc.
- Fortinet Inc.
- General Electric
- HCL Technologies Ltd
- Vmware, Inc.
- Broadcom
- Kaspersky Lab
- General Electric
- Rockwell Automation, Inc
- Pas Global LLC (Hexagon AB)
- Forescout Technologies Inc
- Darktrace
- Nozomi Networks Inc
- Scadafence
Operational Technology Security Industry Developments
In May 2022, Broadcom purchased VMware for US$61 billion. With the acquisition, Broadcom Software Group will rebrand and operate as VMware, with Broadcom’s infrastructure and security software solutions becoming part of VMware’s portfolio.
In December 2021, VMware, Inc. had launched VMware Carbon Black Cloud Managed Detection and Response (MDR), designed to help enterprises with understaffed SOCs (Security Operation Center) fill the gaps arising from rapidly evolving threat landscapes.
Operational Technology Security Market Segmentation
Operational Technology Security Component Outlook
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Solution
- OT Endpoint Security
- OT Network Segmentation
- Anomaly Detection, Incident Response and Reporting
- Others
-
Services
- Managed
- Professional
-
Consulting Services
- Deployment And Implementation Services
- Others
Operational Technology Security Deployment Outlook
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On-Premise
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Hybrid
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Cloud
Operational Technology Security End Use Industry Outlook
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Power & Electrical
- Power Transmission Grid Operator
-
Protection Relays
-
Communication Infrastructure
-
Substation Automation
-
Others
-
- Power Distribution Grid Operator
- Power Transmission Grid Operator
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Protection Relays
-
Communication Infrastructure
-
Substation Automation
-
Others
- Manufacturing
-
Discrete
-
Process
-
Transportation
-
Mining
-
Others
Operational Technology Security Regional Outlook
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North America
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US
-
Canada
-
-
Europe
-
Germany
-
France
-
UK
-
Italy
-
Spain
-
Rest of Europe
-
-
Asia-Pacific
-
China
-
Japan
-
India
-
Australia
-
South Korea
-
Australia
-
Rest of Asia-Pacific
-
-
Rest of the World
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Middle East
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Africa
-
Latin America
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